SI 01320.500 Deeming of Income from Ineligible Parent(s)

A child under age 18 who is applying for or receiving SSI, and who lives in the same household as his or her parent(s) or the spouse of a parent, is presumed to share in the parents’ income. Deeming continues through the month the child attains age 18 and meets all other requirements of the definition of a child in SI 01310.115.

A child who is away at school may be considered to be temporarily absent from the parents' household and may also be subject to deeming (see SI 01310.165, Deeming Concept – Temporary Absence).

Parent-to-child deeming applies to a child under age 18 who lives in the same household with his or her:

natural or adoptive parent(s); or

natural or adoptive parent and the spouse of a parent (stepparent).

IMPORTANT: The income and resources of the spouse of a natural or adoptive parent (stepparent) who lives with the eligible child are deemed to the child only when the natural or adoptive parent also lives in the household with the stepparent and the child.

Parent-to-child deeming applied to a child under age 18 who lived in the same household with his or her:

natural or adoptive parent(s); or

the spouse of a parent (stepparent).

EXCEPTION: Prior to regulatory changes made effective on 06/16/08, in the Second Circuit (Connecticut, New York, and Vermont), the Florez v. Callahan decision set an additional requirement for deeming from the spouse of a natural or adoptive parent. In Connecticut, New York, and Vermont ONLY, the income and resources of the spouse of a natural or adoptive parent who lived with the eligible child were deemed to the child only when the natural or adoptive parent also lived in the household.

The amount of the parents' deemable earned and unearned income is determined by first applying the appropriate exclusions in SI 01320.100 and then subtracting any of the following allocations that apply.

An allocation is deducted for each ineligible child who lives in the household (see SI 01310.115A.3., Deeming Concept – Child).

The amount of the allocation is the difference between the couple Federal Benefit Rate (FBR) and the individual FBR.

EXCEPTION: There is no ineligible child allocation for any child who receives public income maintenance (PIM) payments (as defined in SI 01320.141).

Each ineligible child's allocation is reduced by the amount of his or her own income. For the purposes of reducing the allocation, the items listed in SI 01320.100B. are not included as income to the ineligible child.

The allocations for ineligible children are deducted from the ineligible parents' unearned income first. If the ineligible parents' unearned income does not completely offset the allocation(s), the remainder of the allocation is deducted from the ineligible parents' earned income.

Sign the old version of the affidavit of support, INS Form I-134 SI 00502.200;

Deem income to the alien; and

Are also the ineligible parents of SSI eligible children.

The amount of the allocation is the difference between the couple FBR and the individual FBR.

Each eligible alien's allocation is reduced by the amount of his or her own income. The items listed in SI 01320.100B., Items Not Included in Deeming – General, are not included as income to the alien for purposes of reducing the allocation.

Allocations for eligible aliens are deducted from the ineligible parents' unearned income first. If the parents' unearned income does not completely offset the allocation, the remainder of the allocation is deducted from the ineligible parents' earned income.

The allocation for an eligible alien is given only for an alien who is eligible for SSI or a federally administered State supplementary payment.

An alien allocation is deducted even if the sponsor's income has no effect on the alien's eligibility or payment amount (i.e., no income is deemed).

An allocation is not deducted for an alien who is ineligible for any reason (including excess income resulting from sponsor-to-alien deeming).

For purposes of determining the allocation, the alien's income includes his or her own income plus any income deemed from a source other than the sponsor (i.e., the allocation is not reduced by the amount of income deemed from the sponsor who is the ineligible parent of an SSI eligible child).

The allocation is not reduced by the amount of the alien's SSI payment.

An eligible alien's income deemed from another sponsor or income deemed from his or her own spouse or parent reduces the allocation.

An alien's income reduces only the allocation applicable to himself or herself; it is not used to reduce the allocation for another alien.

If two or more eligible children live in the household, divide the income deemed from the parents equally among them. Add the deemed income to each child's own unearned income to determine eligibility.

However, if the total of the child's share of the deemed income plus his or her own income is greater than the FBR for an individual, deem only that amount which, when combined with his or her own income, reduces his or her benefit (Federal amount plus any federally administered State supplement) to zero.

If the deemed income makes a child ineligible for a payment (reduces the benefit to zero) because that child has other countable income, charge the excess deemed income remaining after reducing his or her payment to zero equally to the other eligible child(ren) in the household following SI 01320.500F.4. in this section.

NOTE: In multiple eligible children deeming cases, continue to deem to a child who is ineligible because of a combination of deemed income and his or her own income until there is a change of deeming status (e.g., the child attains age 18) or until the child becomes ineligible for some reason other than excess income due to deeming (e.g., the child's eligibility is terminated following 12 months of suspension).

To determine the payment amount for an eligible child using the ineligible parents' income from the budget month, follow the procedures in SI 01320.500C. and SI 01320.500D. in this section.

REMINDER: The budget month is two months prior to the computation month, except when determining the payment amount for the first and second months of eligibility after the E02 month or after a period of ineligibility. (For more information on the retrospective monthly accounting provision, see SI 02005.001.)

For the first month of eligibility (or reinstatement), use the ineligible parents' income received in the current month to determine payment amount.

For the second month, use the ineligible parents' income received in the first month to determine the payment amount.

IMPORTANT: When a prior month is the budget month, use the allocation values that were in effect for that prior month in the payment computation.

Bill Sanders is an SSI-eligible child who lives with both of his ineligible parents, a brother, and a sister, both of whom are ineligible for SSI. In January 2008, Bill's father earned $4003.00. The father's earnings were the family's only income. There is no State supplement involved.

Parent-to-Child Deeming Computation

Parents' Earned Income

$4,003.00

Allocation for Two Ineligible Children

(2 x $319)

-638.00

Remaining Earned Income

3,365.00

General Income Exclusion and

Earned Income Exclusion

-85.00

Remaining Earned Income

3,280.00

1/2 Remaining Earned Income

1,640.00

Parental Living Allowance

-956.00

Deemed Income

$ 684.00

The deemed income is greater than the FBR for an individual of $637 + $20 (the general income exclusion for Bill), so Bill is ineligible for SSI in January.

Nancy Weaver, a disabled child, lives with her mother, father, and a 10-year-old ineligible brother. In January 2008, her father receives a pension of $1000 and her mother receives a pension of $466. Neither Nancy nor her brother has any income and they live in a State that has no State supplement.

Parent-to-Child Deeming Computation

Parents' Unearned Income

$ 1,466.00

Allocation for Ineligible Child

-319.00

Remaining Unearned Income

1,147.00

Unearned Income Exclusion

-20.00

Remaining Unearned Income

1,127.00

Parental Living Allowance

-956.00

Deemed Income

$ 171.00

Apply the $20 general income exclusion to the deemed income leaving $151 as countable income to Nancy. Because this amount is less than the $637 FBR for January, Nancy is eligible for SSI. Determine her payment amount by subtracting her countable income (including deemed income) for November from the January FBR for an individual.

James and Janet Johnson are disabled children who live with their mother in a State that does not provide a State supplement. In January 2008, the children have no income but their mother receives $965 in unemployment compensation.

Parent-to-Child Deeming Computation

Parent's Unearned Income

$ 965.00

General Income Exclusion

-20.00

Remaining Unearned Income

945.00

Parental Living Allowance

-637.00

Deemed Income

308.00

Number of Eligible Children: 2

308 / 2

Deemed Income to Each Eligible Child

$ 154.00

Apply the $20 general income exclusion for each child leaving $134 as countable income for each child.

Because this amount is less than the $637 FBR for an individual in January, both children are eligible for SSI. Determine each child's benefit amount by subtracting his or her own countable income (including deemed income) in November from the FBR for an individual in January.

In February 2008, Ms. Johnson (from SI 01320.500F.3.) receives $1,542 in unemployment compensation and James receives $300 from his grandparents for his birthday. Janet still has no income. The family still lives in a State with no State supplement.

Parent-to-Child Deeming Computation

Parent's Unearned Income

$1,542.00

General Income Exclusion

-20.00

Remaining Unearned Income

1,522.00

Parental Living Allowance

-637.00

Deemed Income

885.00

Number of Eligible Children: 2

885 / 2

Income Deemed to Each Eligible Child

442.50

To determine James' eligibility, first apply the infrequent income exclusion described in SI 00810.410D. to the birthday gift he received. Applying the infrequent income exclusion means that $60 is subtracted from the value of James’ birthday gift for a remaining amount of $240. Then add the income deemed to him to his own countable income ($240) for a total of $682.50. Then apply the general income exclusion, which reduces James' income to $662.50. Because this amount is greater than the FBR for an individual, James is ineligible for SSI in February. James' countable income exceeds the applicable FBR by $35.50, so that amount is added to Janet's share of the deemed income resulting in $478 in deemed income to Janet.

Reduce Janet's income by the $20 general income exclusion. This leaves $458 in countable income. Because this is less than the $637 FBR for an individual, Janet is eligible for SSI in February. Determine her benefit amount by subtracting her countable income in December from the FBR for an individual for February.

Tommy Robinson, an eligible child, and his father, Mr. Robinson, move into Tommy’s mother’s household. Tommy’s mother, Mrs. Craig, is married to Mr. Craig who also lives in the household as do the Craig’s two other children. In August 2009, Mr. Robinson receives $950 per month in unemployment compensation. Mrs. Craig has earned income of $1010 in August and her husband has earned income of $2000. The two ineligible children do not receive any income. There is no State supplement.

Parent-to-Child Deeming Computation

Parents’ Unearned Income (Mr. Robinson’s Unearned Income)

$ 950.00

Allocation for two Ineligible Children (2 x $337)

-674.00

Remaining Unearned Income

276.00

General Income Exclusion

-20.00

Remaining Unearned Income

256.00

Parents’ Earned Income (Mother’s and her spouse’s Earned Income)

3010.00

Earned Income Exclusion

-65.00

Remaining Earned Income

2945.00

½ Remaining Earned Income

1472.50

Parents’ Total Countable Income ($256.00 plus $1472.50)

1728.50

Parental Living Allowance (FBR for a couple plus the FBR for an individual ($1011 + $674))

-1685.00

Deemed Income to Tommy

$ 43.50

Apply the $20 general income exclusion to the deemed income leaving $23.50 as countable income to Tommy. Because this amount is less than the $674 FBR for August, Tommy is eligible for SSI. Determine his payment amount by subtracting his countable income (including deemed income) for June from the August FBR for an individual.

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